While the market action today looked extremely mundane, we are encouraged by the resiliency on what could have been a very challenging day.

Last evening Dell (DELL) guided lower which could have potentially been a catalyst for the selling to begin. While the computer maker’s shares were pummeled, the market was not phased with this disappointment. Furthermore, today’s ¼ point raise by the Federal Reserve could have also been an excuse to sell, but turned out to be a non-event.

Breadth was negative; however, not terribly so and key technical levels held in all major averages.

All in all it was a day of brief consolidation which is to be expected after the recent strength.  We are encouraged to see the better technical picture and suspect many market participants are still uncertain about putting money to work. This is the atmosphere that creates a wall of worry for the market to climb and eventually leads to anxiety as the folks on the sidelines begin to feel left out if the market keep moving higher.

We have added to some earnings winners today and continue to be relatively long and optimistic. After a flat 10 months, optimism may prevail as money managers seek to eek out gains into the year end.

TSP members who have followed our lead and put some money back to work at recent lows, may consider increasing that size as the market continues to look as it may be heading higher.

Have a good evening

RevShark